CHAPTER IV: Administration and control

Articles in this section · 11

L1524-1L1524-2L1524-3L1524-4L1524-5L1524-5-1L1524-5-2L1524-5-3L1524-6L1524-7L1524-8

Article L1524-5-1

French General Code of Local AuthoritiesIn force
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Updated 8 Nov 2023

Unless otherwise stipulated in their articles of association, semi-public local companies are represented at the meeting of members or shareholders of their subsidiaries, within the meaning of article L. 233-1 of the French Commercial Code, by one of the representatives of the local authorities or their groupings on their board of directors or supervisory board, appointed by the latter. This representative must come from a local authority or group exercising a power to which the corporate purpose of the subsidiary contributes. The members of the board of directors or supervisory board of a public limited company which is a subsidiary of a local semi-public company, within the meaning of the same article L. 233-1, are appointed, unless there is a clause to the contrary in the articles of association of this subsidiary:



1° In proportion to the share held by the semi-public local company in the capital of its subsidiary, multiplied by the share held by the local authorities and their groupings as shareholders in the capital of the semi-public local company, the total being rounded down to the nearest whole number, by the board of directors or supervisory board of the said semi-public local company and from among the representatives of the local authorities and their groupings who have a seat on the board. At least one representative appointed in this way must come from a local authority or a group of local authorities exercising a power to which the corporate purpose of the subsidiary contributes;


For the remainder, in accordance with the provisions of the law. 2° For the remainder, in accordance with the procedures set out in Section 2 of Chapter V of Title II of Book II of the Commercial Code. The fourth to tenth paragraphs of article L. 1524-5 of this code are applicable to representatives of local authorities and their groupings appointed to sit on the board of directors or supervisory board of a société anonyme, a subsidiary of a local semi-public company, pursuant to 1° of this article.

Mariela Petrova

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Common Questions

Working with a corporate lawyer in France — Q&A

Any time a strategic decision changes how the company is owned, governed or contractually bound — incorporation, fundraising, M&A, restructuring, shareholder agreements, or major commercial contracts. Earlier engagement always costs less than later remediation.

A notary (notaire) is a public officer who authenticates specific deeds (mainly real-estate transfers and certain family-law acts). A corporate lawyer (avocat) advises on strategy, negotiates and drafts company documents, and represents you in disputes. The two roles complement rather than overlap.

Yes — most of our clients are foreign suppliers, investors or holding entities. We bridge the gap between French law and your home jurisdiction's expectations and deliver everything bilingually.

The SAS (Société par Actions Simplifiée) is the default choice for most international structures: flexible governance, single shareholder allowed, no minimum capital, and works cleanly with foreign holding entities. We assess SARL, SA, SCI on the merits when the situation calls for it.

Yes — communications with a French avocat are protected by the secret professionnel (Article 66-5 of the Law of 31 December 1971). This protection is broader than the common-law attorney-client privilege and applies to written and oral exchanges.

We work on fixed fees for clearly scoped engagements (incorporation, contract drafting, audits) and on monthly retainers for ongoing advisory. Hourly billing is the exception, not the default. You always know the cost before work starts.

Typical timeline is 2–3 weeks from KYC kick-off to RCS registration, assuming standard documentation. Holding-company structures, foreign-shareholder identification or in-kind contributions can extend this — we flag the gating items at the first meeting.

Absolutely. We routinely coordinate with your in-house counsel, expert-comptable or notaire — pragmatic collaboration is the norm, not the exception. We send them everything they need to do their part without duplicating work.

Mariela Petrova

Mariela Petrova

Avocate au Barreau de Paris

Toque #C2396

15+ Years In Corporate Practice

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Communications protected by professional secrecy — secret professionnel de l'avocat, Article 66-5 of the Law of 31 December 1971.

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